Compilation of the Social Security Laws

OPERATION OF STATE PLANS

Sec. 1904. [42 U.S.C. 1396c] If the
Secretary, after reasonable notice and opportunity for hearing to
the State agency administering or supervising the administration of
the State plan approved under this title, finds—

(1) that the plan has
been so changed that it no longer complies with the provisions of
section 1902;
or

(2) that in the administration
of the plan there is a failure to comply substantially with any such
provision;

the Secretary shall notify such State agency that further payments
will not be made to the State (or, in his discretion, that payments
will be limited to categories under or parts of the State plan not
affected by such failure), until the Secretary is satisfied that there
will no longer be any such failure to comply. Until he is so satisfied
he shall make no further payments to such State (or shall limit payments
to categories under or parts of the State plan not affected by such
failure).

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